Top Analyst Predicts BlackRock’s XRP ETF Filing After SEC Lawsuit

Nate Geraci, CEO of The ETF Store, has predicted that BlackRock, one of the biggest asset managers in the world, would submit a proposal for an XRP exchange-traded fund (ETF) when Ripple’s case against the United States Securities and Exchange Commission (SEC) will be resolved. According to him, BlackRock’s movement towards the XRP ETF sector will be a milestone change in the cryptocurrency investment space.

Chances of a BlackRock XRP ETF

Geraci anticipates that BlackRock will not wait idly while other companies release XRP ETFs. He thinks that when Ripple’s prolonged legal dispute with the SEC ends, BlackRock will take action to bring out its own XRP ETF. The decision of this case is regarded as a decisive element for institutional interest in XRP-based investment vehicles.

Franklin Templeton just entered the XRP ETF fray as the largest asset manager, registering for an XRP ETF earlier this week. The San Mateo-based manager has assets under management of over $1.5 trillion; its move into the XRP space is a major one. Before Franklin Templeton’s application, the majority of XRP ETF applications were from smaller, crypto-specialized companies.

BlackRock’s Larger Crypto Strategy

Geraci expects BlackRock to consider the potential of introducing cryptocurrency index ETFs. These funds would provide investors with exposure to a diversified basket of cryptocurrencies through one investment vehicle. If it works, this action could make BlackRock a pioneer in diversified crypto-based investment products.

BlackRock’s Cautionary Approach

As much as Geraci warned, BlackRock’s leadership has been cautious about venturing into altcoin ETFs. BlackRock’s US head of thematic and active ETFs, Jay Jacobs, commented last December that the company is still concentrating on its current cryptocurrency offerings—in the form of Bitcoin and Ethereum ETFs.

In the same vein, BlackRock’s Chief Information Officer Samara Cohen said it would take a while before the company considers issuing additional cryptocurrency ETFs. This cautious attitude is in line with BlackRock’s approach of gauging market demand and regulatory clarity before venturing into new crypto products.

Competitive Pressure and Market Dynamics

Geraci’s view is that BlackRock, with its $10 trillion in assets under management, will not allow smaller asset managers to secure a foothold in the XRP ETF market unchallenged. He suggests that BlackRock’s competitive nature and market influence will drive the firm to explore new cryptocurrency ETF opportunities once the regulatory landscape becomes clearer.

Franklin Templeton’s move into the XRP ETF race has already increased competitive tension. If BlackRock moves to apply for an XRP ETF, it would likely spur the expansion of XRP-based investment products and increase institutional access to cryptocurrency markets.

Future Prospects for XRP ETFs

The fate of XRP ETFs relies on the guidance of regulations and market demand. If the Ripple case proceeds in its direction and the SEC provides approval to the filings of XRP ETFs, BlackRock’s future foray into the market can make XRP stronger in the overall crypto investment landscape.

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